2. In Figure 7.6 the reduction in the cost of fringe benefits resulted in an increase in...
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2. In Figure 7.6 the reduction in the cost of fringe benefits resulted in an increase in the amount of fringe benefits and a reduction in the wage income received.
Redraw the worker’s indifference map to demonstrate a circumstance in which fringe benefits would not go up by as much, but wage income would increase .
Explain the difference between the two situations.
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Related Book For
Contemporary Labor Economics
ISBN: 9780073375953
9th Edition
Authors: Campbell McConnell, Stanley Brue, David Macpherson
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